Minutes:
The Chair stated that the Asset Management Strategy would be dealt with in public session but if confidential information came up during the debate the Committee would have to resolve to go into private session.
The Facilities Manager summarised the report on the Asset Management Strategy. The main purpose of the report was to inform Members, on the Council’s approach to the strategy. He thought there would be benefit in the Committee looking at the financial and resource implications. The Economic Development and Enterprise Overview and Scrutiny Committee would also be considering the strategy at its meeting on the 17 December. The final version of the draft strategy would be considered by Cabinet along with the Capital Strategy on the 15 January 2014.
The strategy would frame the Council’s Asset Management approach for the next three financial years. It aimed to provide a robust and formal approach to the management and use of the Council’s land and property assets. A key area of the strategy related to the maintenance and repair of the significant operational land and buildings. An indicative costed and planned schedule had been prepared to cover a five year period.
A stock condition survey had been carried out in 2013 and moving forward the repairs identified had been categorised as Red, Amber and Green. Red meant urgent repairs required to meet Health and Safety obligations or similar imperative. Amber meant it could be kept in abeyance for a time but would result in deterioration of the asset. Green meant repairs which could be put in a planned maintenance programme spread over a number of years. The predicted maintenance costs as a consequence of the stock condition for 2014/15 was £193,000, for 2015/16, £1,795,400 and for 2016/17, £2,315,650.
One of the overall aims of the strategy was to identify assets for disposal. There were a number of surplus sites which had potential for residential development. In 2014/15 the sale of the sites would generate income of circa £700,000 and in 2015/17 circa £7.4m.
The Portfolio Holder stated that the management of assets was a complicated process which affected the way the Borough Council went forward. The decision process was not a simple one. Every building which the Council owned, the Council had to ask if it was an asset or liability. Each asset had to be treated in a similar manner to dealing with a commercial business. The repairs and maintenance work being undertaken were being dealt with only if they were urgent. It was in essence a serious situation. With some buildings the Council had adopted the concept of letting a building for free but with the requirement that any maintenance and repair works be undertaken by the people renting the property.
A Member asked which assets the Council were considering disposing of and their individual expected values. The Chair advised that the Committee would need to go into exempt session if this information was to be discussed.
RESOLVED: That the public be excluded from the meeting during consideration of the Asset Management Strategy because it is likely that there will be a disclosure of exempt information as defined in paragraph 3 in part 1 of Schedule 12A of the Local Government Act 1972.